BOCA RATON, FLA. - The once-rapidly growing auto lease sector of the ABS market has likely reached maturity and growth will be limited for the foreseeable future, panelists speaking at Information Management Network's ABS East gathering said. The seemingly infinite use of subvention loans as well as a lack of new issuers mean that auto lease volume has likely peaked and is seen leveling off from here on out.

The hot-button issue in the auto lease sector - residual value - has not been helped by the zero-percent loans that many captive auto lenders have unveiled in the past 18 to 24 months, depressing the market for used autos and reducing the pool of potential lessees, noted Jeff Orr, managing director at Banc One Capital Markets.

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